How much money can I contribute to my 401k?

401k contributions are susceptible to limitations. There are three types of limits one must pay attention

One’s elective (the contributions they “elect” to make themselves) cannot exceed 18,000.00 as of tax filing year 2017.

One’s total (combination of elective, employer matching contributions, employer non-elective contributions, and any redistribution of forfeited funds in the plan) contribution. The total of these employee and employer contributions cannot exceed 100% of gross income or 54,000.00, whichever is less, as of tax filing year 2017.

“Catch-up” contributions are an additional 6,000.00 allowable to any eligible employee age 50 or older by December 31 of the tax filing year. This additional 6,000.00 is an elective contribution on the part of the employee and is allowable above both numbers outlined above.

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